In the last decade, consumer attitudes toward sustainability have undergone a massive transformation, largely driven by Millennial and Gen Z consumers. Younger, more environmentally-focused shoppers have turned sustainability into a significant driving force in purchasing decisions. A recent study conducted by Assurant revealed that a staggering 74% of U.S. shoppers are now actively seeking out sustainable options when it comes to their electronics, marking a notable departure from traditional buying habits.
This change can be attributed to a variety of factors, including a growing consumer awareness of environmental issues thanks to detailed, instant access to a product’s (or company’s) global impact. Moreover, the ongoing global economic challenges have compelled a substantial portion of consumers, roughly 42%, to explore alternatives to expensive new tech products. Between the sustainability and affordability of secondhand technology, it’s no wonder this shift is gaining traction rapidly. Here are three Tech sustainability trends we’re onto.
Today’s consumers dig secondhand products
VP, Product Management & Strategy, Assurant
According to the recent Assurant survey, 75% of consumers would purchase pre-owned or refurbished personal technology items, with 63% stating they would purchase pre-owned or refurbished smart home tech. Demand is growing so quickly that the market opportunity for the global refurbished and used mobile phone market is expected to reach $146.4bn by 2030. Brands have been quick to respond to this shifting landscape by expanding their offerings to include refurbished, secondhand, and certified pre-owned (CPO) devices and products.
Where some consumers (44%) expressed concern about the quality of new vs. used products, the market has solved that, too. Secondhand products, refurbished to meet industry standards, now often come with a bonus: In many cases, they’re accompanied by short-term warranties to give consumers peace of mind about the quality of their purchases while also reducing electronic waste.
The increased availability of used and CPO devices reflects a broader trend toward sustainability in the tech industry, with major carriers ramping up their promotions and trade-in programs to encourage participation in the circular economy. By extending the lifespan of electronic devices, consumers save money and contribute to environmental conservation efforts.
Sustainable gifting is on the table, especially for Gen Z and Millennials
In addition to personal tech purchases, consumers are incorporating sustainability into their gift-giving practices. This trend is particularly pronounced among younger demographics, such as Gen Z and Millennials, who prioritize brands that align with their social and environmental values. These generations also typically have lower buying power than older generations, which increases the appeal of more affordable products.
The appeal of sustainable gifting extends beyond smartphones and smart home devices, encompassing a wide range of products, including health and fitness equipment, appliances, kitchen gadgets, and electronics. With three in every four consumers interested in used electronics, appliances, and devices, there’s a growing need for a wide variety of secondhand products that can ultimately be gifted.
The future is green, but there’s more work to do
To effectively cater to evolving consumer bases, we have to continue delving into demographic, psychographic, and behavioral data that enables us to leverage insights into sustainable purchasing preferences. For example, while the majority of buyers are open to purchasing used devices for themselves or their spouses, beyond Gen Z and Millennials there remains a stigma associated with gifting secondhand products to friends. Today, only one in every four consumers consider purchasing a used product to gift to a friend or someone outside their immediate family. As we shift the narrative around the quality of used products–especially ones that come with short-term extended warranties–this is an area where we can expect to see growth.
As consumer preferences continue to evolve, it’s imperative to adopt collaborative eco-solutions across the supply chain. By prioritizing durable product designs and implementing robust resale programs, not only can we meet the growing demand for sustainable electronics, but also future-proof corporate operations in an increasingly environmentally-conscious market.
About the Author
Rebekah is Vice President of Product Management and Strategy within the Global Connected Living Business at Assurant where she leads the product vision, roadmap, and execution for Assurant’s Device Lifecycle Solutions. Partnering with business leaders across geographies, Rebekah drives product growth, innovation, and client adoption to maximize the useful life of mobile devices in the circular economy.
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